1. Russell's Fountains produces fountains for private gardens. All fountains are the same size and each unit requires the same amount of resources. From a financial perspective we will use variance analysis to evaluate the results for 2015.

Results 2015 Actual results Static budget Units M m Sales revenue $4,653,000 $4,567,500 Direct materials $1,630,200 $1,587,600 Direct manufacturing $ 978,120 $1,008,000 labour Variable manufacturing $ 890,000 $ 882,000 overheads Fixed manufacturing $ 475,000 $ 450,000 overheads Operating income $ 679,680 $ 639,900